EU Trade with India and China

EU27 trade with China grew by 150% between 2000 and 2006. EU Trade with India up by 80%.

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China and India play an increasing role in EU27 trade.
China, which was the fourth trading partner of the EU27 in
2000, hassince 2003becomethe second trading
partner after the USA. India, which was the 17th
trading partner in 2000, ranked ninth in 2006.

On the occasion of the EU-China Summit, which will take place
on Wednesday 28 November in Beijing, and the EU-India Summit,
which will take place on Friday 30 November in New Delhi, Eurostat, the
Statistical Office of the European Communities, issues the latest data
available on trade and investments between China and the EU27 and
India and the EU27.

Germany accounts for more than 40% of EU27 exports to China

Between 2000 and 2006, EU27 trade in goods with China grew by
more than 150%, with exports increasing from 26 billion euro to 64 bn and
imports from 75 bn to 195 bn. As a result the EU27 deficit in trade with
China rose from 49 bn in 2000 to 131 bn in 2006. In 2006, China
accounted for 6% of EU27 exports and 14% of EU27 imports.

Among the EU27 Member States, Germany (27 bn euro or 43% of the
total) was by far the largest exporter to China in 2006, followed by
France (8 bn or 13%) and Italy (6 bn or 9%). Germany (43 bn
or 22%) was also the largest importer, followed by the
Netherlands1 (31 bn or 16%) and the United Kingdom (29
bn or 15%). All Member States recorded trade deficits with China in 2006.
The largest were observed in the Netherlands1 (-28 bn), the
United Kingdom (-24 bn), Germany (-16 bn) and Italy (-12
bn).

More than half of EU27 exports to China in 2006 were machinery
and vehicles2 and one fifth were other manufactured
articles2, while these two groups accounted for nearly 95% of
imports. At the detailed level, the main EU27 exports to China
were aircraft and motor cars, while the main imports were computers and parts,
mobile phones and digital cameras.

Germany, United Kingdom and Belgium main EU27 trading partners of
India

Between 2000 and 2006, EU27 trade in goods with India grew by
around 80%, with exports increasing from 14 bn euro to 25 bn and imports from 13
bn to 23 bn. As a result the EU27 deficit in trade with India rose
from 1 bn in 2000 to 2 bn in 2006. In 2006, India accounted for 2.1% of
EU27 exports and 1.7% of EU27 imports.

Among the EU27 Member States, Germany (6.3 bn euro or 26% of
the total) was the largest exporter to India in 2006, followed by
Belgium (4.6 bn or 19%) and the United Kingdom (4.0 bn or 16%).
The United Kingdom (4.5 bn or 20%) was the largest importer, followed by
Germany (3.9 bn or 17%), Belgium and Italy (3.0 bn or 13%
each). The largest surplus in trade with India in 2006 was observed in
Germany (+2.5 bn) and the largest deficit in Spain (-1.2 bn).

Around 80% of EU27 exports to India in 2006 were machinery and
vehicles and other manufactured articles, while other manufactured articles
accounted for more than 60% of imports. At the detailed level, the main
EU27 exports to India were unworked diamonds and aircraft, while
the main imports were worked diamonds and clothes.

EU27 Member States' trade in goods with China

million euro

Exports

Imports

Balance

2000

2006

2000

2006

2000

2006

EU27

25,863

64,101

74,632

195,038

-48,768

-130,937

Belgium1

1,340

2,921

4,011

10,204

-2,671

-7,282

Bulgaria

12

62

74

770

-62

-708

Czech Republic

72

318

755

2,606

-683

-2,288

Denmark

424

909

1,429

3,417

-1,005

-2,508

Germany

9,459

27,426

17,126

43,312

-7,667

-15,885

Estonia

7

211

164

332

-157

-120

Ireland

166

874

741

1,767

-574

-893

Greece

33

124

757

1,819

-724

-1,694

Spain

553

1,713

4,136

12,116

-3,583

-10,403

France

3,424

8,052

8,158

15,839

-4,734

-7,788

Italy

2,380

5,703

7,028

17,962

-4,647

-12,260

Cyprus

1

9

129

232

-128

-223

Latvia

0

16

26

153

-26

-138

Lithuania

2

15

89

369

-88

-355

Luxembourg

68

215

89

3,525

-21

-3,310

Hungary

44

617

1,031

4,307

-986

-3,689

Malta

2

53

61

106

-59

-53

Netherlands1

1,116

3,339

8,705

30,972

-7,589

-27,633

Austria

586

1,288

842

2,500

-257

-1,213

Poland

107

609

1,500

3,571

-1,393

-2,961

Portugal

53

214

382

773

-330

-559

Romania

93

174

189

1,738

-96

-1,564

Slovenia

16

56

149

305

-133

-249

Slovakia

10

175

191

742

-181

-566

Finland

1,462

1,970

935

2,946

527

-976

Sweden

2,043

2,246

1,859

3,909

185

-1,663

United Kingdom

2,391

4,791

14,077

28,745

-11,687

-23,954

Total Extra-EU27

849,739

1,165,223

992,698

1,360,590

-142,959

-195,367

China / Total

3.0%

5.5%

7.5%

14.3%

EU27 trade in goods with China by product

million euro

Exports

Imports

Balance

2000

2006

2000

2006

2000

2006

Total

25,863

64,101

74,632

195,038

-48,768

-130,937

Primary products:

2,018

5,894

3,498

5,970

-1,480

-76

Food & drink

439

885

1,525

2,809

-1,086

-1,924

Crude materials

1,417

4,908

1,571

2,578

-154

2,330

Energy

162

101

402

583

-239

-481

Manufactured goods:

23,234

56,686

70,611

188,459

-47,376

-131,773

Chemicals

2,421

6,100

2,805

6,268

-385

-169

Machinery & vehicles

16,528

38,083

27,739

93,912

-11,211

-55,829

Other manuf’d articles

4,285

12,503

40,066

88,278

-35,781

-75,775

Other

611

1,521

524

609

87

912

EU27 Member States' trade in goods with India

million euro

Exports

Imports

Balance

2000

2006

2000

2006

2000

2006

EU27

13,678

24,603

12,846

22,728

832

1,874

Belgium1

3,467

4,624

1,732

3,029

1,735

1,595

Bulgaria

12

26

13

38

-1

-12

Czech Republic

84

317

81

133

3

184

Denmark

166

265

203

395

-37

-130

Germany

2,084

6,324

2,298

3,857

-213

2,467

Estonia

2

12

9

8

-7

3

Ireland

110

154

119

198

-9

-44

Greece

45

50

126

489

-81

-440

Spain

212

543

748

1,722

-535

-1,178

France

1,031

2,631

1,266

1,820

-235

811

Italy

1,007

2,170

1,626

2,984

-618

-814

Cyprus

2

4

29

35

-28

-30

Latvia

1

6

5

22

-4

-16

Lithuania

4

15

19

19

-15

-4

Luxembourg

8

27

10

13

-2

14

Hungary

20

105

71

118

-51

-13

Malta

1

2

15

17

-15

-15

Netherlands1

549

1,129

929

1,890

-380

-761

Austria

131

407

97

177

34

230

Poland

52

161

152

282

-99

-121

Portugal

25

29

170

238

-144

-209

Romania

40

191

31

172

9

18

Slovenia

18

35

24

55

-6

-21

Slovakia

57

21

25

39

32

-19

Finland

318

330

66

114

252

217

Sweden

310

1,072

223

354

87

718

United Kingdom

3,920

3,953

2,759

4,510

1,161

-558

Total Extra-EU27

849,739

1,165,223

992,698

1,360,590

-142,959

-195,367

India / Total

1.6%

2.1%

1.3%

1.7%

EU27 trade in goods with India by product

million euro

Exports

Imports

Balance

2000

2006

2000

2006

2000

2006

Total

13,678

24,603

12,846

22,728

832

1,874

Primary products:

944

1,357

1,928

3,307

-983

-1,950

Food & drink

57

263

1,207

1,471

-1,150

-1,208

Crude materials

463

927

680

818

-217

109

Energy

424

167

40

1,017

383

-850

Manufactured goods:

11,795

22,602

10,848

19,252

947

3,350

Chemicals

1,276

2,198

1,141

2,377

135

-179

Machinery & vehicles

4,067

10,421

1,206

2,917

2,861

7,503

Other manuf’d articles

6,452

9,983

8,502

13,957

-2,049

-3,974

Other

939

644

70

170

869

474

EU27 surplus in trade in services with China and India

In 2006, the EU27 exported 12.3 bn euro of services to China,
while imports of services from China amounted to 10.6 bn, meaning that
the EU27 had a surplus of 1.7 bn in trade in services with China.
China accounted for just under 3% of total extra-EU27 trade in
services.

In 2006, the EU27 exported 6.6 bn euro of services to India,
while imports of services from India amounted to 5.1 bn, meaning that the
EU27 had a surplus of 1.5 bn in trade in services with India.
India accounted for just around 1.5% of total extra-EU27 trade in
services.

EU27 trade in services with China

million euro

Credit

Debit

Net

2005

2006

2005

2006

2005

2006

Total

11 129

12 328

8 858

10 624

2 271

1 704

of which:

Transportation

3 765

4 505

3 508

4 776

257

-271

Travel

1 308

1 608

2 306

2 170

-998

-562

Other services

5 845

6 214

2 774

3 655

3 072

2 559

Total extra-EU27

404 394

447 395

346 219

380 331

58 175

67 064

China / total extra-EU27

2.8%

2.8%

2.6%

2.8%

EU27 trade in services with India

million euro

Credit

Debit

Net

2005

2006

2005

2006

2005

2006

Total

5 277

6 595

4 694

5 143

583

1 452

of which:

Transportation

2 221

2 202

1 214

1 427

1 007

775

Travel

662

811

1 655

1 413

-993

-602

Other services

2 340

3 569

1 817

2 292

523

1 278

Total extra-EU27

404 394

447 395

346 219

380 331

58 175

67 064

India / total extra-EU27

1.3%

1.5%

1.4%

1.4%

EU27 net investor in China and India

The EU27 invested 3.7 bn euro in China in 2006, with
Chinese investment in the EU27 of 2.1 bn, a net outward flow of
1.6 bn. In 2006, the EU27 invested 1.6 bn in India, with
Indian investment in the EU27 of 0.1 bn, a net outward flow of 1.5
bn.

EU27 FDI* flows with China and India

(million euro)

China

India

2005

2006

2005

2006

EU27 FDI in China / India (outward)

5 928

3 704

2 239

1 580

China / India FDI in the EU27 (inward)

441

2 135

567

99

Net EU27 FDI flows (outward minus inward)

5 487

1 569

1 672

1 481

* FDI: Foreign Direct Investment

Dutch imports, and therefore the trade deficit, are over-estimated because
of the “Rotterdam effect”, where goods destined for the rest of the
EU arrive and are recorded in harmonised EU external trade statistics in Dutch
ports. This then has a positive effect on the external trade balances with
China/India of those Member States to which the goods are re-exported, as these
shipments would be recorded as intra-EU trade with the Netherlands, rather than
extra-EU trade with China/India. To a lesser extent, Belgian trade figures are
similarly over-estimated.

Machinery and vehicles includes power generating and industrial
machinery, computers, electric and electronic parts and equipment, road vehicles
and parts, ships, airplanes and railway equipment.